Wednesday, June 25, 2008
We were up, down and all over the place today. The Dow ended 5 points higher on heavy volume. Advance/declines were 2 to 1 positive. We were up over 100 points after the Fed left rates unchanged. But we couldn't hold the gains. We really need to see some more upside here in my opinion because we remain oversold. The overall market was stronger than the Dow but we came off the highs there as well. So we'll see what happens. I took a look at the OEX calls but didn't buy any. Gold lost about $9 on the futures but came back in the aftermarket. The XAU sold off early and came all the way back to be up 1/2. Another gold share buy signal was rendered. I had an order in for some ABX calls but wasn't filled. ABX was down 1/2, GG and NEM were flat after selling off early. Volatility picked up in the gold issues. The dollar fell after the Fed announcement. Oil was off as well. I'm thinking of leaving in an overnight order in ABX but it's risky. GE rose 40 cents on heavy volume. Perhaps we are finally putting in a bottom there. I'm not trading it here though. Mentally I feel OK, slept well enough. My thinking is that I should have just got some gold share calls when the buy signal appeared again. However at this point it may be better to wait for the shares to pull back again. Perhaps it is just another missed opportunity. You really need to take a stand one way or another at some point. I'm having trouble with that at the moment. There hasn't been a decent long term trend for gold lately and the sideways movement can be frustrating. Sooner or later it will break out but the timing of that is the question.